Recommendation on Terms and Conditions of Aid

Most aid is given in grant form, but some is in the form of loans. During the 1960s and 1970s, DAC members agreed on a series of measures designed to improve the overall financial terms of aid, either by increasing the share of grants, or by reducing the interest rate or lengthening the repayment period of loans. The last of these measures was the 1978 Recommendation on the Terms and Conditions of Aid , under which members agreed to raise the overall grant element of aid to 86 per cent, with special provisions in the case of least developed countries.